Home Insulation

Lord Birt Excerpts

Tuesday 14th May 2024 Lords Chamber

[Lord Callanan (Con)]

I certainly do agree that we need to target the poorest households, which is precisely what we do under schemes such as the social housing decarbonisation fund and the energy company obligation. The noble Lord is also right to point out that the private rented sector is one of the most difficult sectors. But home insulation grants, ECO, et cetera, are often rolled out in PRS homes.

[Lord Birt (CB)]

My Lords, insulation is plainly cost-saving, whatever form your heating takes, but it is particularly important in respect of heat pumps, powered as we know by expensive electricity. Does the Minister yet know when the Government will announce the long-promised rebalancing of the cost of electricity versus the cost of gas?

[Lord Callanan (Con)]

The noble Lord is absolutely right that, whatever form of heating you have, insulation is always a good thing, because you can use less of it. Rebalancing is obviously a particularly tricky political issue. We are currently looking at it and, although I cannot give the noble Lord a date yet, we hope to have a consultation on some proposals out shortly.

Biomass: Power Generation

Lord Birt Excerpts

Wednesday 13th March 2024 Lords Chamber

[Lord Callanan (Con)]

Of course I agree absolutely with the statement made by my noble friend. As I said, I have spoken to Ofgem, which is investigating. It is its job to enforce against these criteria. My officials are in touch with those in British Columbia for further discussions. However, there are many perfectly legitimate reasons why timber would be removed from old-growth forests—for instance, for firebreaks, diseased wood, et cetera. This is a complicated issue. Drax is an important part of the UK’s energy security. Let us make sure that it does this sustainably and abides by the rules before we rush to judgment.

[Lord Birt (CB)]

Has the Minister actually studied the detailed and evidenced findings of the last few weeks from “Panorama”, confirmed by the Government of British Columbia, that Drax is, in fact, burning wood from old-growth primary forests—rich, diverse habitats that are over 150 years old and will take 80 years or far longer to grow back—and that it is doing so in defiance of its 2017 commitment? Against wind, solar, hydro and nuclear, is not the case for biomass as a source of renewable power fatally weak and wholly unconvincing?

[Lord Callanan (Con)]

As the noble Lord knows—we have been in correspondence on this—I do not agree with him. As I said, we are in discussions with the British Columbia authority. This is not a third-world country; it is perfectly capable of sustainably managing its forests in its own way. There are internationally agreed strict sustainability criteria. It is important that Drax follows those rules. Ofgem is studying its application and will not hesitate to take action against it, as I have said.

Heat Pumps

Lord Birt Excerpts

Wednesday 6th March 2024 Lords Chamber

[Lord Callanan (Con)]

A huge amount of research has gone into it. We reckon that about 90% of homes in the UK are suitable for heat pumps. Obviously, there is a wide variety of different homes; the area that the noble Lord and I come from has a lot of terraced properties. You can use ground source heat pumps with common arrays in the road, and you can use heat networks that have one remote location powering the heat pumps. There are a number of different technologies where this is perfectly possible.

[Lord Birt (CB)]

My Lords, we languish not only very close to the bottom of the European league table of heat pump installation but at the bottom of another European league table: the ratio of the price of electricity to gas, with electricity being far higher. The Minister has discussed the matter before. When will we rebalance that imbalance in the UK?

[Lord Callanan (Con)]

If the noble Lord had been paying attention earlier, he would have noticed that I answered that question in response to my noble friend Lord Leigh. This is a difficult political issue—I will not shy away from that fact—but the Government are aware that we need to make progress on it, and we will issue a consultation this year.

Civil Nuclear Road Map

Lord Birt Excerpts

Monday 15th January 2024 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a good point, but the attraction of using a similar design is that many of the teething problems that have been undergone at Hinkley will hopefully be solved by the time we get to a decision on Sizewell. As I said, my noble friend makes a valid point and, again, it is not a question of either/or. We will continue the development of SMRs and AMRs in conjunction with large-scale nuclear.

[Lord Birt (CB)]

My Lords, I welcome the Government’s Statement on their long-term nuclear policy. It is and it should be a critical component of our strategy for achieving net zero. However, I want constructively to raise some points. I worked at No. 10 in 2004 when the decision was made in principle to give the go-ahead to a new nuclear plant, which of course became Hinkley Point C. It has become a 25-year project. This is a genuine question: what lessons does the Minister think the UK can learn about how we manage these ambitious long-term infrastructure projects? Did we set out to fund it in the right way?

Biomass Strategy 2023: Cross Sectoral Sustainability Framework

Lord Birt Excerpts

Wednesday 15th November 2023 Lords Chamber

[Lord Callanan (Con)]

Indeed, my noble friend makes a very good point. We have currently awarded £32 million of funding to projects as part of the Government’s £1 billion net zero innovation portfolio, because there is an awful lot that we can do to improve the availability of biomass feedstocks and look at deploying it more effectively.

[Lord Birt (CB)]

My Lords, the “Panorama” on Drax offered vivid and compelling evidence that fatally undermined Drax as a renewable proposition. The Minister has previously asserted that that was an accurate presentation, but as yet has offered no evidence to support his claim. Drax wrote to me almost four months ago, also claiming that the programme was a misrepresentation, and offered to present me with evidence. Despite prods from me and further promises from Drax, I have yet to receive that evidence. Is it possible that the “Panorama” was an accurate representation?

[Lord Callanan (Con)]

To slightly correct the noble Lord, I think I said it was an inaccurate portrayal, rather than an accurate one, as he said. We have debated this matter before, and the noble Lord has tabled a number of Parliamentary Questions to me on it. I cannot go any further than to repeat what I have already said: government officials have engaged extensively with forestry experts and Canadian officials following the “Panorama” programme, and we have found no evidence that wood pellet production in the region is unsustainable. We continue to believe that the narrative would have benefited from a much fuller picture of how harvesting decisions are made in practice.

2030 Emissions Reduction Target: Heating

Lord Birt Excerpts

Tuesday 5th September 2023 Lords Chamber

[Lord Callanan (Con)]

As the noble Lord knows, that is a matter for building regulations. The future homes standard will come in from 2025; it will not specify the type of heating but it will put in place standards that will, in effect, end gas boiler installations in new homes.

[Lord Birt (CB)]

My Lords, the Minister will know that heat pumps are a very efficient means of turning electricity into heat, but does he think that, while electricity costs roughly three times as much as gas, there is any prospect whatever of them taking off in the UK?

[Lord Callanan (Con)]

The noble Lord is right about the efficiency of heat pumps and about the cost of electricity. Later this year we will issue a consultation on so-called price rebalancing, which will attempt to bring the electricity price down relative to gas.

Drax Biomass Power Station

Lord Birt Excerpts

Monday 3rd July 2023 Lords Chamber

[Lord Birt (CB)]

Speaking of proof, has the Minister had a chance to view the devastating “Panorama” on Drax? Drax’s claims have been fatally undermined. Ancient forests have been cut down and indiscriminately turned into pellets, transported 12,000 miles by ship and incinerated in Yorkshire, emitting more CO₂ than coal did before and at gigantic cost to the taxpayer. This is not the route to net zero.

[Lord Callanan (Con)]

The noble Lord should be careful of jumping to conclusions. I have not seen the programme, but my officials have. They have engaged extensively with forestry experts and Canadian officials following the programme, and the officials’ conclusion is that the “Panorama” programme provided an inaccurate representation of practices by the forestry and biomass sector on the ground.

Climate: Behaviour Change (Environment and Climate Change Committee Report)

Lord Birt Excerpts

Wednesday 7th June 2023 Grand Committee

[Lord Birt (CB)]

My Lords, our behaviour can adapt at the required pace only if government itself provides the right policy framework and puts the appropriate incentives in place—and that, I regret to say, is not happening.

The majority of carbon emissions in the UK, as we all know, stem from road transport and from heating 30 million homes and buildings. The number of EVs is rising fast and outpacing a charging network which is haphazard and unreliable—viz the recent queues over the holiday at motorway service stations. Range anxiety will not dissipate until a charge point is as quickly and easily accessed as a petrol pump. We need a comprehensive national plan to ensure that, wherever you travel and wherever you live, whether in a tower block, a terraced street, or a country village, a charge point is readily and reliably to hand. When will we have such a plan?

We have the oldest housing stock in Europe—poorly insulated and heated overwhelmingly by gas. For most households, the cost of migrating away from hydrocarbons to effective insulation, which is vital, and a heat pump is prohibitive. How will government transform the incentives —making electricity far cheaper than gas, for instance? When will the Government deliver on the challenge that they set themselves in the 2021 strategy to

“make the green choice the easiest”

and

“make the green choice affordable”?

Precisely how much electricity do the Government forecast we would need if by 2040 we were successfully to decarbonise transport and heating? Where is the analysis underpinning the “doubling” current need assumption in the Powering Up Britain plan published earlier this year—if it exists? Will it be published? Where is the plan for, and what is the cost of, the massive upgrade of our electricity distribution network that such extra demand would require?

Powering Up Britain would not pass muster in any decent boardroom in Britain, for it is full of headlines but largely devoid of analysis and assessment—for instance, of the economics of hydrogen or carbon capture, or clarity about what part both technologies might play. For hydrogen, yes, it would most likely be maritime and heavy rail freight on non-electrified lines —but what else? Mankind, as most here will agree, faces no greater nor more important challenge than net zero, but achieving that goal requires co-ordination right across Whitehall. I worked at the centre of government for six years, and I know just how hard it is to herd the cats and achieve integrated and holistic cross-departmental objectives.

If the UK is to play its part, we need appropriate machinery of government in place. It is plainly right to have an energy department, but I think it is wrong to assign it the lead responsibility for net zero. That can be achieved only by a muscular entity at the centre working hand in glove with all departments and with powerful analytical support evaluating competing technologies, assessing the economics, integrating planning, identifying the costs, and monitoring progress against detailed plans. Until we have such machinery in place—and I greatly regret to say this—we can have no confidence whatever that we are on a certain and optimal path to net zero, and all those many well intentioned individuals who want to play their part and change their behaviour will lack the opportunity to do so.

COP 28

Lord Birt Excerpts

Wednesday 17th May 2023 Lords Chamber

[Lord Birt (CB)]

My Lords, following the contribution of the noble Lord, Lord Howell, I would be the first to recognise that the route to net zero is fraught with challenge and difficulty. But will the Government publish a considered integrated assessment of the optimum route forward for the UK and a detailed plan—which we do not have at the moment—of where we go over the next five to 10 years?

[Lord Callanan (Con)]

I am sorry to disagree, but we do have detailed plans on where we are going. We have laid them out in our building strategy and in our net-zero plan. Only just before the Recess we published our Powering Up Britain plan, outlining exactly the kind of details that the noble Lord referred to.